The concept of elderly care has changed! , this young people

Author:Randy Hahn
Release time:Jun 09, 2024 05:38 AM

Source | People's Forum Network-People's Forum Magazine

With the acceleration of the aging of my country's population, retirement care is no longer an exclusive consideration for the elderly, and young people have also joined the army of retirement planning. A survey data shows that 90.3% of the young people surveyed agree that the earlier the better, the better. This also means that more and more contemporary young people are beginning to realize the importance of proactive preparation and retirement wealth planning. Compared with the elderly, what are the new changes in the concept of retirement care among this generation of young people? Let’s see together.

The concept of elderly care is a slow variable. Contemporary young people’s concept of elderly care has undergone a turning change from raising children for old age to diversifying and becoming independent. This is not only in compliance with the country’s requirements of the times to build a multi-level silver economic supply structure, but also from a broader perspective to prepare for future retirement reserves for themselves and their families. Observing the new characteristics and changes of contemporary youth’s concept of elderly care from the new perspective of the silver economy is not only to analyze the intergenerational feedback of young people’s filial responsibilities, support consumption, and care for the elderly; its more important implication is to comprehensively The population structure outlines and measures the pension literacy and cost-effectiveness of the whole society in actively responding to the aging population. In summary, the contemporary youth’s concept of elderly care from the perspective of the silver economy has the following outstanding characteristics.

First, contemporary young people’s concerns about the silver economy are integrated and diverse. Although the younger generation has not yet entered the stage of old age, their concern for the silver economy has longer-term significance. Contemporary youth do not pay more attention to the direct needs of later life than the elderly, such as tangible products such as "food, clothing, housing, transportation, health, culture, tourism and clothing" that are closely related to aging, quality institutions and adequate pensions, etc. For old content. Contemporary youth’s attention to the theme and content of the silver economy is integrated and diverse, returning to the essential attribute of “more effective allocation of scarce resources in an aging society.” Their interests go beyond the traditional aging industry and focus not only on retirement re-employment with the elderly as the main producers, or modern service industries or products with the elderly as the main consumers. It can be believed that contemporary young people’s attention to the silver economy has a broader scope, spanning economic entities in the primary, secondary and tertiary industries, especially modern finance and comprehensive industrial systems, involving the government, market, society, and families. Policy arrangements and independent choices of various economic entities, such as organizations and individuals, to adapt to the impact of the structural changes in the age structure of the country's population on the sustainable development of the economy and society.

Second, contemporary young people show the distinctive characteristic of “stronger awareness but weaker action” in preparing for retirement. Data from a "2022 Contemporary Youth Pension Planning Survey" show that more and more contemporary young people are beginning to realize the importance of forward-looking preparations for retirement and retirement wealth planning. Among the 3,000 valid samples from those born in 1985 to 2000, 90.3% of the young people surveyed agreed that the earlier the better, the better. However, with regard to retirement concerns such as reimbursement for serious illness and medical treatment, insufficient income savings, and reduced quality of life in later years, the vast majority of young people interviewed have not put their awareness of retirement care into action. Among them, 43.7% of the young people surveyed are only "slowly starting to understand elderly care products"; 31.1% of the young people surveyed will "occasionally think about it in the dead of night, but have not yet taken action"; and 8.6% of the young people surveyed said that “Retirement care is still too far away for me and I won’t consider it for the time being.” Only 16.6% of the young people surveyed believe that “retirement care is a major life event and they are already allocating related assets.”

Third, contemporary young people’s understanding of retirement investment focuses on its public economic nature rather than emphasizing personal gains. The silver economy has relatively special public product attributes, which are social, welfare and market-oriented. Contemporary young people are relatively aware that pension investments are fundamentally different from financial products in other market economies in terms of supply and demand, profit fluctuations, and market capacity. Pension investment products are largely subject to administrative constraints from top-level design of public policies on population aging. and fiscal orientation of public goods. Therefore, contemporary young people adhere to the "retirement attributes" of retirement investments such as retirement financial management and personal pensions. However, they do not pursue personal investment returns. Instead, they combine personalized information such as age and gender, retirement plans, financial status, and risk preferences to focus on " Long-term value preservation, safety and stability, appropriate liquidity” and other holding experiences. The above survey data further shows that nearly one-third of the young people surveyed agree that retirement planning and participation in retirement investments are a way of personal financial management, which can not only help them accumulate retirement reserves, but also obtain tax benefits and other returns. Under the consideration of understanding the low profit, welfare and public economy of pension investment products, contemporary young people have more diversified choices in the allocation of specific pension investment products. Commercial pension insurance, whole life insurance and other dividend return products are the most popular. , followed by savings deposits, bank financial management and public funds.

Fourth, contemporary youth’s participation in the silver economy has a dynamic development character that keeps pace with the times. The silver economic activities of contemporary youth are not entirely directed at saving and consumption that smooths the life cycle, but are in a process of continuous exploration combined with policy guidance, new technologies, new formats and new business models such as mobile communications and digital economy. As the lifestyle, consumption concepts and life pursuits of young people are gradually taking shape and are closely related to technological innovation, industrial integration and industry segmentation, the connotation and extension of their participation in the silver economy are also constantly expanding. From helping parents with health management to reallocating family property, to realizing the "three-pillar" pension security system of national basic pension security, corporate occupational annuity and personal pension insurance, contemporary youth participate online and offline flexibly and voluntarily Come to the new wave of silver economy. Data from the 2017 Southwestern University of Finance and Economics China Household Finance Survey show that young people aged 18-40 own commercial life insurance and commercial health insurance, accounting for only 4.35% and 3.41% of the total sample. Although this indicator is higher than the 2.07% and 0.72% of the elderly group aged 60 and above, it can be seen that the retirement wealth planning needs of our country's youth were not effectively mobilized a few years ago. It is worth mentioning that in August 2018, the first batch of publicly raised pension target funds were approved for issuance, and my country’s pension financial product system began to take shape; in May and August 2021, the China Banking and Insurance Regulatory Commission issued the "About Launching Exclusive Commercial Pension Insurance Pilot" "Notice" and "Notice on Launching the Pilot Program of Pension Financial Management Products"; in April 2022, the General Office of the State Council issued the "Opinions on Promoting the Development of Personal Pensions". In the past five years, the country has closely laid out a diversified silver economic structure and diversified pension financial products. By the end of 2023, more than 50 million people have opened personal pension accounts. According to the data analysis of the "Personal Pension First Anniversary Insight Report", young and middle-aged groups such as those born in the 1980s and 1990s have shown a strong willingness to invest in personal pensions.

Fifth, the retirement planning of contemporary youth is not only influenced by the promotion of new media and popularization of knowledge, but also shaped by major life events. The "2022 China Young and Middle-aged Elderly Care Maturity Survey Report" jointly released by CITIC Securities and Renmin University of China pointed out that the average subjective elderly care maturity score of young and middle-aged respondents in my country is 5.41, and the average objective elderly care maturity score is 6.40. The value range of this indicator is between 0 and 10. The larger the value, the better the respondent’s retirement maturity. This survey data shows that my country’s young and middle-aged generation’s retirement literacy, retirement awareness and retirement decision-making and other retirement maturity are gradually improving, but there is still a certain distance from more mature retirement planning and knowledge reserves. The "2022 Contemporary Youth Pension Planning Survey Report" reveals that the formation and development of my country's youth's pension literacy mainly stems from two aspects. One is the promotion influence of new media and financial publicity. The main channels through which contemporary young people obtain pension knowledge are social platforms such as Douyin, Weibo and Xiaohongshu, financial institutions such as banks, securities firms and insurance companies, and third-party wealth management platforms such as Alipay and WeChat. The second is the major life events that one has experienced. The "China Urban Elderly Care Service Demand Report 2022" points out that due to life experiences such as becoming parents for the first time, having sick parents, and being hospitalized themselves, young people aged 30-39 have significantly increased their understanding of elderly care issues and their emphasis on elderly care planning.

Contemporary youth are concerned about future retirement planning and are trying to find development opportunities and innovation possibilities for their own generation from the major changes in population and economic and social development. On the one hand, from the perspective of intergenerational friendly social advocacy and social participation, young people’s concern about future retirement planning is a social phenomenon that has emerged in the context of accelerated population aging and intergenerational replacement. The younger generation's focus on future retirement planning is to fully participate in the national strategy of aging economic and social development, and has an important function in promoting the innovative development of the silver economy. On the other hand, from the perspective of the adjustment of the national industrial structure and the composition of the silver economy, young people's concerns about future retirement planning are affected by many factors such as policy guidance, resource supply, demand structure, technological development, and yearning for a better life. Contemporary young people are gradually paying attention to future pension planning, which will help expand the production and consumption objects of the silver economy from the entire population and the entire life cycle, as well as all-channel economic and social activities such as the design, research and development, circulation and sales of elderly products and services, and realize the goal of starting from the population. Transformation from dividends to new economic form with longevity dividends.

First, contemporary young people are concerned about future pension planning. In the context of a deeply aging society, they must use the rational principle of utility maximization to deal with savings and income at different ages. Some studies have used China Family Panel Survey data to analyze age and pension planning tendencies. The results show that the age of the household head has an inverted U-shaped relationship with the purchase of commercial pension insurance for the family. Around the age of 40 is an important time point for personal and family pension decisions. The "2023 Chinese Residents Retirement Readiness Index Survey Report" found that the reason why some younger youths can only use a small part of their income for savings is because their overall income level is low; a considerable proportion of their income can only be used for maintenance Daily expenses are not enough to be fully used for future pension reserves. It is gratifying that contemporary young people are gradually understanding the importance of “planning everything in advance”. Data from the "China Pension Prospects Survey Report" released in 2022 show that the proportion of my country's residents' pension savings in total income has shown an upward trend for three consecutive years; especially among young people aged 18 to 35, they spend on pensions on average every month The amount of investment or planned income will increase rapidly from 1,624 yuan in 2021 to 1,940 yuan in 2022.

Second, contemporary young people pay attention to future pension planning in order to alleviate the imbalance of intergenerational exchange amid the trend of declining fertility rates and gradually weakening family functions. The "2022 Contemporary Youth Pension Planning Survey Data" shows that the top concerns and considerations of the young people surveyed, such as physical health, promotion and salary increase, family harmony and retirement care are closely related to future pension planning. Contemporary young people no longer rely on the traditional "family-style pension model" of marriage, spouse or raising children for old age. They are trying to use the "de-familialization" pension strategy to lay out the important role of "old age care" over a longer period of time and across generations. Life Lessons.

Third, contemporary young people pay attention to future pension planning in order to actively resolve pension anxiety and resist inflation risks as the country strives to build a "three pillars" national pension system. The "2022 Contemporary Youth Pension Planning Survey Data" shows that the top two reasons for starting pension planning are "I hope to live an ideal life after retirement, so I must plan in advance" and "Aggravating aging and insufficient social security pensions" "In order to support personal pension", the top two reasons for not starting pension planning are still "the income is acceptable, and social security pension payments are stable, pension should not be a problem in the future" and "new pension models are constantly emerging, and mutual assistance can be provided in the future "The interviewed young people's concern about pension planning is closely related to the construction of an institutionalized pension security system and the pressure on national pension insurance expenditures under the general situation. Our country’s government-led basic pension insurance is the first pillar, covering more than 1.04 billion people across the country and occupying a dominant position. However, as the second pillar, enterprise annuity led by enterprises has a small scale, scope and proportion, and its coverage rate is low; personal pension insurance, as the third pillar, is still in its infancy. For young people, the way to effectively resolve pension anxiety and resist the risk of inflation in the long term is to pay attention to their future pension planning, integrate the "three pillars" of basic pension insurance, corporate annuities and personal pensions, and rationally allocate business Pension.

Fourth, contemporary young people pay attention to future retirement planning, which links retirement expectations with high-quality life in old age, which helps to improve happiness throughout the life cycle. The "2022 China Young and Middle-aged Elderly Care Maturity Survey Report" found that national retirement methods and retirement pursuits are changing. The younger generation and high-income groups are more yearning for new and high-quality elderly care methods, such as residential care, urban care, and high-end real estate care. This fully demonstrates that contemporary young people’s concern for future retirement planning is inseparable from their deep yearning for a better life. Young people are not satisfied with basic pension needs, but look forward to a more comfortable life in old age. Their pension wealth reserves also need to take into account various expenses such as medical care, health, leisure and tourism. The sense of security and gain throughout the life cycle depends on forward-looking retirement planning to maintain and increase the value of retirement investments and aging reserves.

It is of great significance to make good pension plans for young people and build forward-looking pension welfare guarantees with Chinese characteristics. From the perspective of the strategic value of the silver economy, doing a good job in retirement planning for the youth group not only emphasizes the commodity attributes of the market economy, but also strengthens the market operation mechanism and provides more products and better services through the prosperity and development of the effective market to support the high-quality development of the youth group. The pursuit of quality elderly care; it also follows the distinctive social attributes and is different from the satisfaction of the realistic elderly care needs of the elderly. The youth group’s elderly care planning exceeds the direct functions of consumption security and service itself, and is a new social culture under the rapid changes in population structure. and new development drivers.

From the perspective of the silver economy, the main ideas for forward-looking welfare protection for young people’s retirement planning include two aspects. On the one hand, to provide forward-looking welfare protection for young people’s pension planning requires clearer institutional goals of the national pension security system. At present, the construction of my country's pension security system is shifting from a narrow to a broad policy positioning, from a gap-filling to inclusive and then to a service-oriented policy, and from improving the coverage of basic pension security to a multi-pillar, all-round and comprehensive welfare policy. The content transition is from the elderly group to the policy target of the entire population and the entire life cycle, and from cash subsidies to policy measures that take into account both products and services. The implementation strategy of forward-looking welfare security for youth group pension planning needs to focus on the above-mentioned pairs of mechanism transformations. On the other hand, forward-looking welfare protection for young people’s retirement planning needs to be based on the current aging system, pension security levels, aging social and economic conditions, and the concept of filial piety and respect for the elderly as the logical starting point. To plan for the elderly care of young people, we must more comprehensively take into account the coherence, adaptability, development and continuity of rapidly changing systems, cultures and concepts. Especially in the current important window period for the advancement of deep aging and the development of a silver economy, it is particularly necessary to pay attention to the overall coordination of institutional arrangement steps and relevant market supply, talent reserves and technological development, and accurately adapt to the youth, middle-aged, elderly, etc. The differentiated needs of people at different life stages, as well as the specific needs in the family life cycle such as falling in love, getting married, starting a family, raising offspring, and empty-nest dissolution, as well as income savings, investment returns, health care, travel and health care, retirement and re-employment, and social Engagement and lifelong learning and other types of services.

In fact, doing a good job in retirement planning for young people is a long-term and systematic process of "preparing for aging". Its purpose is to accumulate sufficient retirement reserves for Chinese-style modernization and release new demographic dividends. With the joint participation of multiple actors such as the government, market, organizations, families and individuals, we should coordinate the transformation costs of the new form of aging society and the development advantages of longevity dividends, and expand the relevance of the silver economy under the principle of "inclusive policies". The supply of products and services benefits the entire population and the entire life cycle, including young and middle-aged groups and the elderly.

On the specific path of operability, we need to focus on the following three aspects. First, focus on the timetable and major task planning for the construction of a multi-level pension security system. Combining the characteristics of demography, economics, social security, human resources and other disciplines, youth group pension planning should be incorporated as a forward-looking medium and long-term plan into the integrated framework of the national strategy to actively respond to population aging as soon as possible. Second, we need to properly handle the relationships between "state and society", "family and individuals" and "intra-generation and inter-generation", and strengthen the co-governance system and mechanism for youth group pension planning. From the perspective of the silver economy, the construction of a pension security system for the whole population and the whole life cycle must not only adapt to the diverse needs of the youth group, but also test whether the central and local governments, the government and the market, and different generations can form a multi-level and multi-dimensional “Holistic Aging Society Governance Framework” with Diversity. Doing a good job in youth group pension planning involves the division of labor and cooperation between youth development, labor and employment, savings and consumption, family construction, resource allocation, technological innovation, concept updating, etc., market functions and social responsibilities. It also requires mobilization from individuals to families and organizational institutions. and the extensive participation of a series of social forces. Third, to provide forward-looking welfare protection for young people’s retirement planning, it is necessary to establish a policy theme of “development” rather than “welfare dependence”. Under the overall goal of Chinese-style modernization, liberating and developing productivity is the primary task of youth pension planning to ensure the talent base of the silver economy. Do a good job in retirement planning for young people and achieve forward-looking welfare protection, including new decisions and actions on personal consumption, savings and investment in a deeply aging society at the micro level, as well as enterprises and industries related to the elderly at the meso level. The new developments and adjustments also include new fiscal, market and monetary policies and new configurations that actively respond to the national strategy of population aging at the macro level. When planning for the elderly care of young people, we still prioritize productivity and population modernization to provide a more solid material foundation for the silver economy.

Selected from People's Forum Magazine, Issue 10, 2024

Original title | New changes in young people’s concept of elderly care from the perspective of the silver economy

Author | Lu Jiehua, researcher at Peking University’s Center for Chinese Society and Development Studies and professor in the Department of Sociology

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